Truist Bank CD Rates – Earn 0.05%
This review of Truist CDs (certificate of deposit), looks at interest rates, rules regarding early withdrawals and minimums, and other details.
Typically, the longer the duration of the CD, the higher the interest rate.
Many banks have CD products, including Citi Bank, Goldman Sachs, and Capitol One.
In this review, we will only be covering Truist and its CD product. So let’s dive in!
What are Truist’s CD rates and how do they compare to other banks?
To be completely frank, interest rates on Truist CDs are not the most attractive.
Brick-and-mortar banks are not known for offering the highest interest rates for savers, and Truist, with its 2,718 locations, is no different in that respect.
Here is an overview of their rates for accounts under $100k.
Accounts with over $100k will still receive the same 0.05% interest rate.
The national average CD rate for brick-and-mortar banks is hovering around 0.60% APY.
The average rate for online banks is around 3.25% APY, a 2.65% difference.
At 0.05%, Truist CD rates are well below average, even for brick-and-mortar institutions.
Truist CDs have maturities ranging from 7 days to 5 years.
For terms between 7 and 31 days, a minimum deposit of $2,500 is required. For terms between 32 days and 60 months (5 years), only a minimum deposit of $1,000 is required.
Truist CD accounts have no monthly fee, which is a plus! They will also renew automatically at maturity unless you specify otherwise. If they renew automatically, they will be for the same period as the original CD term, and will yield Truist’s standard interest rate at the time of renewal.
Early Withdrawal Penalties
Does Truist charge early withdrawal penalties? Yes.
When a customer signs up for a CD account, they are agreeing not to withdraw their deposit before the end of the term. In exchange for locking up their cash, they receive interest. However, if the customer does decide to withdraw prematurely, they will incur a fee.
Truist charges different withdrawal fees based on the duration of the CD.
Different banks have different early withdrawal fee structures for their CDs, but they are usually either a fixed fee or several months’ worth of interest.
Early withdrawal fees on Truist CDs are a minimum of $25. If the interest earned on the account is greater than $25, Truist will use the interest as the fee.
Truist CD Details You Should Know
If the duration of a CD is less than 32 days, there is a one-day grace period after the renewal date wherein the customer can change the term of the CD.
If the duration of a CD is greater than 32 days, there is a ten-day grace period after the renewal date wherein the customer can change the term of the CD.
All deposits are FDIC-insured up to $250,000. However, that will only cover one account type for one depositor. If you have multiple accounts that add up to more than $250,000, you may want to spread some of that capital across different financial institutions to reduce your risk.
Truist is a top 10 U.S commercial bank headquartered in Charlotte, North Carolina. Formed in the 2019 merger of SunTrust and BB&T, Truist offers a wide range of financial services including:
- Commercial Real Estate
- Small Business
- Corporate and Institutional Banking
- Specialized Lending
- Asset management
- Wealth Management
- Capital Markets
Are Truist Bank CDs the Best Option for Savers?
Truist offers safe, FDIC-insured CD accounts with guaranteed rates. Their early withdrawal fees are reasonable, and as long as you see the CD through to term, you won’t incur any additional fees.
However, if you’re looking for an attractive interest rate, Truist might not be for you. Their current standard interest rate of 0.05% is well below the national average for brick-and-mortar banks. It’s possible to get a much better CD rate at online banks like Discover or Capitol One. So if you’re interested in getting the best bang for your buck, you may want to look elsewhere for a more attractive rate.